The government promises VND 913 trillion for a 30% wage increase

On the afternoon of June 25, the National Assembly discussed in groups the government’s report on the content of the wage reform, corrective pensions, social security benefits, preferential benefits for the deserving and social benefits from July 1.

Vice-President of the National Assembly Nguyen Thi Thanh said that the party and the state are striving to introduce profound innovations in wage policy so that workers can fully devote themselves to their work.

“Paying salaries based on job position is a completely new idea that will have to be introduced, but for now there are still many shortcomings and it cannot be implemented yet,” the Vice-President of the National Assembly agreed to the government’s proposal.

Permanent member of the National Assembly’s Finance and Budget Committee Le Minh Nam also agreed with the report of the Government and the audit agency on the implementation of the wage reform and related policies in line with the road map “step by step, ensuring feasibility, efficiency and compliance with the budget’s payment capacity.”

Regarding the adjustment of basic salary from the current VND 1.8 million to VND 2.34 million per month (30% increase), Mr. Nam said that the aim of this increase is to improve the lives of employees. However, the government must pay attention to controlling inflation.

“The government must have solutions to limit the negative effects, especially minimizing wage increases that lead to price increases, reducing the significance of the increases,” Mr. Nam noted.

He also recommended strict application of the provisions of the Act on Prices related to price declarations, public and transparent disclosure of price information to avoid speculation, profiteering or misapplication of the provisions of the Act on Prices.

In the case of issues that cannot be interfered with using legal tools and that must operate in accordance with market mechanisms, the state also needs policy. “Inspections and controls are necessary to check the application of prices,” Mr. Nam suggested.

Director of the Ho Chi Minh National Political Academy, Chairman of the Central Theoretical Council Nguyen Xuan Thang also noted the need to control prices with salary increases from July 1. Because if we are not careful, the pace of price increases will exceed the pace of wage increases, thus preventing the improvement and improvement of the lives of cadres, employees and civil servants.

Later in his report to the National Assembly, Interior Minister Pham Thi Thanh Tra said that the 30% adjustment to basic salary, adjustments to pensions, social security benefits, preferential allowances for meritorious persons and social benefits will affect more than 50 million people who currently receive basic salary. Therefore, the total source of financing is very large.

Minister Pham Thi Thanh Tra said that according to the preliminary plan implemented in accordance with Resolution 27, the government calculated the total financing requirement for the wage increase for three years (2024-2026) to be about VND 760,000 billion, an average increase of more than 20%.

However, after the basic salary adjustment, it increased by 30% along with a 10% bonus in the total basic salary fund and related policies, increasing the total funding source to VND913.300 billion.

Therefore, in the coming time, the Government has proposed to add additional funds for wage reform and related policies for 2024 and beyond. The government can provide this source.

According to Minister Pham Thi Thanh Tra, the government has so far raised VND 680,000 billion. In the remaining two years, as signs of positive economic recovery emerge and many revenue-increasing measures emerge, the government will seek to provide sources of wage reform to implement the entire program.

In addition, there is inflation control, because there is currently a fear that wage increases will result in higher prices. “When introducing the 20.8% correction in 2023, this was the mentality, but in reality the CPI increase was small and did not exceed the threshold set by the National Assembly,” said the Minister of Interior.

Currently, the government is trying to control inflation at 4 – 4.5%. The government developed a detailed scenario, issued a resolution aimed both at promoting economic growth, controlling inflation and stabilizing the macroeconomy, and sent many telegrams asking for early initiative. From there, providing value in pay increases for related entities.

Minister Pham Thi Thanh Tra also emphasized that the post-2026 journey must include very drastic solutions, save expenses, increase revenues, report to the relevant authorities to complete Resolution 27 for the synchronous, concrete and full implementation of wage reform.

“This is the best possible solution, the overall goal is to create a sense of satisfaction and try to spread this spirit to motivate the team of government officials, public sector employees and workers to make greater efforts, fulfill political tasks well and promote the economic development of the locality and the country,” shared the minister Pham Thi Thanh Tra.

Thu Hang